French Construction Downturn Deepens

2025-10-06 07:36 By Kyrie Dichosa 1 min. read

The HCOB Construction PMI in France fell to 42.9 in September 2025 from 46.7 in August, marking an accelerated contraction and extending the sector’s downturn to a 40-month sequence.

Across the three main categories, residential building led the decline with the fastest fall in three months, commercial construction worsened markedly, and civil engineering slipped back into contraction after August’s brief improvement.

New orders declined at a quicker pace, reflecting subdued client demand amid weak business conditions.

Firms continued to scale back operations, with purchasing volumes contracting for the 29th consecutive month and employment falling again, although job losses eased slightly.

Cost pressures were muted, with input price inflation cooling to a five-month low.

Looking ahead, business sentiment weakened further, with the future activity index dropping to a ten-month low as political uncertainty, fewer calls for tender, and a lack of new opportunities weighed on expectations.



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